Venezuela has issued a decree that outlines the operations of the country's national currency, the Petro. In addition, the decree also details the Venezuelan government's future plans for the currency, including distribution, mining, and trading. In addition, the petrol coins will receive 5.3 billion barrels of oil endorsed.

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<b><i>530000000 barrels of crude oil and mining planning</i></b>

Venezuelan President Nicolás Maduro has announced that it will allocate $ 267 billion worth of 5.3 billion barrels of crude oil to endorse the currency, the national crypto-digital currency launched by President Maduro in early December last year.

It is reported that Venezuela will use the Orinoco heavy oil zone with all the oil reserves of the block No. 1 in Ayacucho as the material basis for the issuance of "petroleum coins." President Maduro confirmed that each one received a barrel of crude oil support. He said:

<b><i>"We will set up a team of experts to encrypt digital currencies and participate in the mining work in all the states."</i></b>

In addition, President Maduro also revealed that the Arco Minero goldfield in the Orinoco heavy oil belt and the country's diamond deposits will also be allocated to support the oil currency.

In addition, the Venezuelan Digital Monetary Authority and the National Blockchain Authority will be responsible for overseeing the creation, distribution, and operation of the currency.

<b><i>Details of the issue of oil currency law</i></b>

There are 13 parts in the law governing coins issued by the Maduro government. Half of the articles deal with the details of the operation of the oil coins.

For example, Article IV of the Act provides for assets backed by petro-mins, stating that petro-coins are related only to Venezuelan oil under OPEC and other commodities, including gold, diamonds, coltan and natural gas. In addition, as a physical support, the petrolatum will receive a sales and purchase contract equivalent to one barrel of crude oil from the Venezuelan oil basket or any commodity identified in the country.
In Article V of the Decree, the property of wallet holding a pecuniary coin and the convertibility of the pecuniary oil were clarified. It states:

<b><i>"The holder of a petro-coin may exchange other equivalent crypto-digital currencies at the market exchange rate published by the National Encrypted Digital Currency Exchange, or the Bolivarian Banknote at the exchange rate of the foreign exchange market. The person will have a virtual wallet, which is the sole responsibility of the holder of the coin. "</i></b>

In the eighth article of the decree, which deals with the issue details of the oil currency and the ICO tip, it states:

<b><i>"The initial issue of petro-coins will be conducted through auctions or direct transfers, and the Venezuelan Digital Monetary Authority and the National Blockchain Authority will be responsible for the oversight of the activities."</i></b>

The Venezuelan Government made further explanations in Article 9 of the Act :

<b><i>"Once the encrypted digital assets and Venezuelan regulators have completed their first auction of bribe coins and assigned password assets to investors, the regulatory power is dispersed."</i></b>

As for the specific release date of the oil currency, Venezuela's Minister of Communications and Information Jorge Rodríguez said it will be announced within a few days. However, President Maduro said in his speech for the new year that the start of operation of the oil currency will be January this year.

<a href="https://www.reuters.com/article/us-venezuela-economy/enter-the-petro-venezuela-to-launch-oil-backed-cryptocurrency-idUSKBN1DX0SQ">Source</a>